25300918
Description
Flashcards by Sophia Lynch, updated more than 1 year ago
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Created by Sophia Lynch
over 4 years ago
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| Question | Answer |
| What is the relationship between Institutions and Enforcement Mechanisms? | |
| What purpose do contracts serve? | 1. Allows trade and specialisation 2. Minimises transaction costs associated with negotiation, measurement, incomplete contracts and enforcement 3. legal code vital 4. enforcement vital |
| What purpose do property rights serve? (3) | 1. Allows people to keep what they have produced/traded 2. Provides incentives to invest in capital, education, technology, without fear that effort will be stolen 3. Enforcement vital |
| What are the costs of economic growth? (3) | 1. Pollution 2. Lifestyle changes 3. Income inequality |
| What is the relationship between air pollution and GDP per capita? | Real GDP per person increases -> Pollution increases -> Real GDP continues to increase -> the environmental quality improves |
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